Parliamentary inquiry to probe “exorbitantly” huge university VC pay packets, governance concerns

Powerful university vice-chancellors are expected to be hauled in front of a proposed probe into staff wage theft, governance issues and pay rates.

Powerful university vice-chancellors are expected to be dragged to a proposed parliamentary probe and forced to answer questions on their “exorbitantly” high salaries and other scandals affecting the beleaguered sector.

Labor senator Tony Sheldon will meet with his fellow Senate Education and Employment Committee on Friday to seek support for the inquiry, however it’s understood that it will be approved.

Members will also scrutinise allegations of wage theft and underpayment, which the National Tertiary Education Union has calculated to exceed $382m and $203m respectively in recent years, as well as the use of external consultants.

Senator Tony Sheldon said there was ‘no other job in Australia where you can be paid so exorbitantly while performing so badly’. Picture: NewsWire/ Martin Ollman

Mr Sheldon said vice-chancellors had “questions to answer about the extraordinary range of governance issues that have arisen on their watch”.

“There’s no other job in Australia where you can be paid so exorbitantly while performing so badly, with seemingly no consequences or accountability for the impact on university staff and students,” he said.

“A strong, well-managed higher education sector is essential to the wellbeing of staff and students, our economy and national interest. Australians deserve universities that put students and staff first, not the interests of university executives.”

According to the NTEU, the average vice-chancellor at a public institution is on a total renumeration package of about $1.048m.

Notably, prominent Labor minister Bill Shorten retired from politics this week to become the vice-chancellor of the University of Canberra.

Former NDIS minister Bill Shorten resigned from politics to become the vice-chancellor at the University of Canberra. He formally tendered his resignation letter on Monday. Picture: NewsWire/ Martin Ollman

While he asked for his total renumeration package to be reduced byt 15 per cent to $850,000, his predecessor Paddy Nixon was on $1.8m before he left the role.

Earlier this week Education Minister Jason Clare also announced the government’s appointments for the Expert Council on University Governance, which will include Chair and chief executive of the Committee for Economic Development of Australia Melinda Cilento, prominent activist Sharan Burrow and Minter Ellison chair Bruce Cowley.

The panel has been tasked with ensuring the institutions are able to protect staff and students and examine issues around employment security, underpayment and good governance.